Central Company: Comprehensive Analysis of Performance in Saudi Market 2025

Central Company was established in Saudi Arabia in 2010, launching as a joint-stock company focusing on real estate development and providing high-quality residential and commercial projects. Its shares were listed on the Saudi financial market (Tadawul) in 2015, becoming part of the list of major companies influencing the Saudi real estate sector. The company adheres to the highest standards of governance, transparency, and sustainability in all its operations, aiming to achieve sustainable returns for shareholders through developing projects that meet market needs and keep pace with population and economic growth in the Kingdom. The ownership of the company's shares is distributed among major investment institutions, individual investors, and some strategic owners such as banks or government entities, which has enhanced its financial stability and provided it with a better competitive edge in the market. Central Company regularly discloses its financial results and is subject to the oversight and supervision of the Saudi Capital Market Authority (CMA), which enhances its credibility with investors.

Central Company recorded remarkable financial performance in 2024, with its share price rising to 18.5 SAR in mid-2025, raising its market capitalization to 1.85 billion SAR based on 100 million issued shares. The price-to-earnings (P/E) ratio was about 15, which is within sector averages and reflects the company's profitability stability compared to its annual earnings. The cash dividend yield reached 2.5% (0.46 SAR per share) for the past fiscal year, classifying Central among companies with moderate returns for shareholders.

For quarterly results, the company achieved revenues of 120 million SAR in the fourth quarter of 2024, with a year-on-year growth of 10%, and a net profit of 15 million SAR, an increase of 8% compared to the same quarter of the previous year. Earnings per share (EPS) rose to 0.15 SAR, with an operating margin of 12%, a debt-to-equity ratio of 0.7, and a return on equity (ROE) of 9%. These indicators demonstrate management's efficiency in controlling costs and achieving sustainable growth while maintaining good liquidity and positive operating cash flows that support ongoing projects and debt servicing.

Central Company belongs to the real estate development sector, one of the most prominent sectors in the Saudi financial market. This sector contributes about 5-7% of the GDP and is a key driver of economic growth and job creation. The sector is influenced by a range of factors, including monetary policy and interest rates, supply and demand for real estate products, government regulations, and the overall economic environment. Recently, the sector has witnessed strong competition among real estate development companies, supported by major government projects such as NEOM, the Red Sea project, and Qiddiya. Additionally, government housing programs (such as the Sakani program) have helped boost demand for residential units. Companies face challenges such as rising construction costs and fierce competition, but the expansion into smart cities and public-private partnerships opens new avenues for growth. Central is working to capitalize on these opportunities through diverse projects, focusing on quality and sustainability, and adhering to market regulations and transparency to achieve long-term success.

Central Company faces strong competition from prominent companies in the Saudi real estate development sector, including Dar Al Arkan (4300), Emaar the Economic City (4041), and Jabal Omar Development (4250). Dar Al Arkan excels with its large portfolio and extensive experience, while Emaar focuses on developing diverse projects in Riyadh and Jeddah, and Jabal Omar specializes in major projects around the Holy Mosque. Central competes with these companies in terms of project quality, financing capability, and adherence to governance standards. Central employs distinguishing strategies such as developing residential projects with modern technologies and expanding into smart cities, along with strategic partnerships with both public and private sectors. Central's financial indicators show relative stability in growth, with a return on equity that sometimes surpasses some competitors, enhancing its position in the sector.

Central Company is committed to regularly disclosing its financial results and annual and quarterly reports, in accordance with the requirements of the Saudi Capital Market Authority. These disclosures enhance transparency and allow investors and financial analysts to assess the company's actual performance. In 2024, Central announced positive financial results in several quarters, revealed management changes, and launched new projects, sharing the results of these disclosures through the official Tadawul website. Disclosures play a crucial role in building trust with investors, reflecting the company's commitment to governance and financial discipline, and mitigating rumors or inaccurate information that may affect stock movement or investment decisions. It is always advisable to review Central's official reports and consult reliable sources before making any investment-related decisions.

Central Company witnessed significant administrative changes in 2024, including the appointment of a new chairman and several executives in strategic positions, particularly in financial and operational management. These changes aim to enhance operational efficiency and improve financial performance in line with the company's expansion plans. Central also announced strategic alliances with major local development companies and established advanced internal control units, enhancing its ability to manage risks and comply with regulatory standards. The new management is developing plans to expand into new Gulf markets and stimulate digital transformation in its real estate projects, aligning with modern trends in the Saudi real estate development sector.

In late 2024, Central announced the launch of a massive residential project in collaboration with local development companies, comprising thousands of residential units and integrated recreational facilities in one of the major cities. The company also partnered with an international technology provider to implement smart city solutions in its upcoming projects, aiming to enhance the quality of life for residents and provide value-added real estate products. These steps reflect Central's direction towards investing in technology and sustainability, in line with Saudi Vision 2030. Partnerships with both public and private sectors are key success factors for the company, allowing it to leverage diverse expertise and expand its customer base, in addition to enhancing its competitiveness in the market.

Central Company's results are directly affected by changes in monetary policies and interest rates set by the Saudi Central Bank (SAMA), which influence real estate financing costs and market demand rates. In 2024-2025, the global increase in interest rates led to higher borrowing costs; however, government support and subsidized financing programs mitigated this impact in the local market. Additionally, the overall economic environment, such as improved oil revenues and increased government spending on infrastructure projects, helped stabilize demand in the real estate sector. Central is keen to manage its financing structure wisely, maintaining a moderate debt ratio (0.7 to equity) to avoid any future financing risks.

Central Company places great importance on governance and adherence to transparency standards as per the requirements of the Saudi Capital Market Authority. The company has developed effective internal control units and announced its commitment to disclosing executive compensation and managing any transactions with related parties transparently. Central also focuses on applying environmental sustainability standards in its projects, including reducing emissions and implementing sustainable building standards, which contributes to attracting investors seeking socially responsible investments. These policies reflect the company's commitment to creating long-term value for shareholders and protecting the interests of all stakeholders.

Central enjoys several promising opportunities in the Saudi market, including participation in major government housing projects, expansion into smart cities, and benefiting from rapid population growth. Additionally, regional expansion plans open new markets for it in the Gulf region. However, the company faces challenges such as rising construction costs, fierce competition from major companies, and potential fluctuations in monetary policy and interest rates. Central's ability to manage these challenges and adapt its strategies to market changes will be the decisive factor in its continued growth and achieving its long-term goals.

To obtain the latest information about Central Company, it is advisable to follow the disclosures section on the official Tadawul website, in addition to reviewing the data published on the company's official website and the Saudi Capital Market Authority's website. Websites like Argaam provide detailed reports and analyses of financial quarters, summarizing key administrative events and new projects. The published financial indicators provide a strong basis for performance analysis, such as the price-to-earnings ratio, return on equity, and debt-to-equity ratio. Investors should refer to these reliable sources for a comprehensive view of the company's performance before making any investment decisions.

With the increasing complexity of financial markets and the multitude of options available to investors, the importance of consulting a licensed financial advisor before making any investment decision related to Central's stock or other companies becomes evident. A financial advisor helps in understanding the nature of risks, assessing financial solvency, and determining the suitability of the investment for the investor's personal goals. They also assist in reading and analyzing financial reports objectively and impartially, away from the influence of rumors or unreliable analyses. The Capital Market Authority emphasizes this in all its publications, aiming to protect investors and ensure decisions are based on accurate and reliable information.